Refer to Figure 17-4. Which of the following is true at W2?
A) The supply curve is positively sloped.
B) The income effect and the substitution effect are equal.
C) The substitution effect is larger than the income effect.
D) The income effect is larger than the substitution effect.
D
You might also like to view...
A price ceiling is only effective if it is above the market equilibrium.
Answer the following statement true (T) or false (F)
Why are financial-sector crises scarier than collapses in other sectors of the economy?
A. Financial-sector crises happen more often than collapses in other sectors. B. If the financial sector fails, it can bring the whole economy down with it. C. The financial sector is the biggest sector. D. Most people work in the financial sector.
Advocates of an unregulated market system argue that
A. competition promotes efficiency. B. competition leads to product variety and quality. C. competition leads to innovation. D. all of the above.
Research involving industrially advanced countries suggests that:
A. the more independent the central bank, the lower the average annual growth of real GDP. B. the more independent the central bank, the higher the average annual growth of real GDP. C. there is no relationship between the degree of independence of a country's central bank and the growth rate of its real GDP. D. the less independent the central bank, the higher the average annual rate of inflation.